Trade-Ideas LLC identified

Greatbatch

(

GB

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Greatbatch as such a stock due to the following factors:

  • GB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.5 million.
  • GB has traded 60,111 shares today.
  • GB is trading at 5.31 times the normal volume for the stock at this time of day.
  • GB is trading at a new high 7.16% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on GB:

TST Recommends

Greatbatch, Inc. designs, manufactures, and sells medical devices and components for the cardiac, neuromodulation, orthopaedics, portable medical, vascular, energy, and clinical markets worldwide. It operates in two segments, Greatbatch Medical and QiG Group. GB has a PE ratio of 29. Currently there are 4 analysts that rate Greatbatch a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Greatbatch has been 223,800 shares per day over the past 30 days. Greatbatch has a market cap of $1.3 billion and is part of the health care sector and health services industry. The stock has a beta of 1.20 and a short float of 3.8% with 3.77 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Greatbatch as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth significantly trails the industry average of 35.9%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • GB's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GB has a quick ratio of 2.00, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • GREATBATCH INC's earnings per share declined by 27.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GREATBATCH INC increased its bottom line by earning $2.14 versus $1.44 in the prior year. This year, the market expects an improvement in earnings ($2.61 versus $2.14).

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